The final component of trading accounts is gross profit; gross profit is the amount of money that is left after the cost of goods sold has been taken away from the stock turnover. The formula for gross profit is sales turnover – cost of goods sold. According to business alpha the gross profit was 410,000.
How much is National Income? 8. Given: wages, salaries, and fringe benefits = $6.1 trillion; interest = $400 billion; profits = $500; depreciation = $550 billion; rent = $150 billion; and indirect business taxes = $250 billion. Find National Income, NNP, and GDP. 9.
Return on common stockholders’ equity $29,946,992 - (2430872-15801332) / 200,000 = 82.9% * Solvency ratios 9. Debt to total assets $7,628,563 / 34,825,498 = 22% 10. Times interest earned 3,272,314 / 121,533 = 26.9 Riordan Manufacturing, Inc. Horizontal Analysis for the Balance Sheet Increase or (Decrease) 2010($) 2009($) Amount % Assets Cash $2,807,029 $1,511,253 $1,295,776* 46.1%* Account Receivables $2,695,342 $2,644,307 $51,035 1.9% Current Portion of Note Receivable $102,976 $117,475 ($14,499) (14.1%) Inventory $8,517,203 $7,123,790 $1,393,413 16.4% Deferred Income Taxes – net $0 $0 $0 0% Pre-Paid Expenses and other Items $402,240 $458,875 ($56,635) (14.1%) Total Current Assets $14,524,790 $11,855,700 $2,669,090 18.4% Liabilities Current Liabilities Current Portion of Long-Term Debt $474,032 $484,894 ($10,862) (2.3%) Accounts Payable $1,391,385 $1,636,923 ($245,538) (17.6%) Accrued
Margin of Safety (DOLLARS) Budgeted – break even = 100,000-62500= 37500 (Percentage) 37.500/100.000= 37.5% (Units) 37500/250= 150 3.Compute the company’s margin of safety in units assuming the proposal is accepted. Margin of Safety (Dollars) 137500-58929= 78571 (Units) 78571/275= 286 4. Compute the increase or decrease in profit assuming the proposal is accepted, show the contribution Income Statement for current and proposed. Present Proposed Sales 100,000 137500 Variable expense 64000 80000 CM 36000 57500 Fixed cost 22500 244750 Net income 13500 32750 difference: 19250 4a. What is the operating leverage for the current and proposed?
Soelistio - Capital 1/9 Cash at Bank $ 2,000,000 Cash at Bank 2/9 Building 3/9 Furniture 3/9 Cartage 4/9 Supplies 5/9 Equipment $ 500,000 $ 83,000 $ 100 $ 7,000 $ 5,000 + 2/9 Cash at Bank Building $500,000 Furniture 3/9 Cash at Bank $83,000 Supplies 4/9 Cash at Bank $7,000 Equipment 5/9 Cash at Bank $5,000 Cartage 3/9 Cash at Bank $100 + Chart of Accounts Revenue 1101 1102 1103
| Liquidity RatioCurrent Ratio | Current assets/ Current liabilites | 203,100,000/37,500,000 | 5.416 | a measurement of CanGo to pay off current liabilities using current assets | Liquidity RatioQuick Ratio | current assets-inventory/current liability | 203,100,000-32,000,000/37,500,000 | 4.5627 | Measures CanGo ability to meet its short term obligation MSOT liquid assets. | Profitability RatioReturn On Equity | | | |
Prepare Gate's general journal entry to record the issuance of the note payable. b. Prepare Gate's general journal entry to record the accrued interest due at December 31, 2007. c. Prepare Gate's general journal entry to record the payment of the note on March 1, 2008. Answer: a. | 12/1/07 | Cash | 45,000 |
|December 31, 2011 | |ACCOUNT |DEBIT |CREDIT | | | Millions | |Cash & other current assets |$ 53 | | |Other assets |101 | | |Accounts payable | |$ 5 | |Other liabilities | |38 | |Shareholders’ equity | |80 | |Revenues | |275 | |Expenses | 244 |___ | |Total |$398 |$398 | Lululemon’s net income: $31 million ($275 – $244) (10-20 min.) E
Liquidity Ratio Calculations: Current Ratio = Current Assets / Current Liabilities $147,800 / $90,283 = $1.637:1 Acid-Test Ratio = (Cash + Short-Term Investments + Net Receivables) / Current Liabilities $89,664 + $0 + $51,869 / $90,283 = $1.567:1 Receivables Turnover = Net Credit Sales / Average Receivables ($1,109,295 - $89,664) / [($51,869 + $81,557) / 2] = 15.283 *Average Collection Period = 365 / 15.283 = 23.883 Days When evaluating Huffman Trucking’s ability to pay off short-term debt and maturing obligations, it’s imperative to analyze the company’s liquidity. Utilizing the current ratio to analyze liquidity, which compares all current assets to current liabilities,
Problem 13-23A Financial statements for Pocca Company follow. (See Excel) Use the financial statements for Pocca Company from Problem 13-22A to calculate the following ratios for 2006 and 2005. Working capital Current ratio Quick ratio Accounts receivable turnover (beginning receivables at January 1, 2005, were $47,000.) Average number of days to collect accounts receivable Inventory turnover (beginning inventory at January 1, 2005, was $140,000.) Average number of days to sell inventory Debt to assets ratio Debt to equity ratio Times interest earned Plant assets to long-term debt Net margin Asset turnover Return on investment Return on equity Earnings per share Book value per share of common stock Price-earnings ratio